Mortgage interest rates are rising
BAY COUNTY, Fla. (WJHG/WECP) – Interest rates are rising. So if you’re in the market to buy a home, what you can afford now might be different.
“As interest rates go up, their payment is going to go up, so they’re going to be able to afford less and less of a house. The house price will be lower to keep them in the same payment. Interest rates have therefore affected the purchasing power of buyers,” said Susan West, president of the Central Panhandle Association of Realtors.
Tonya Anderson, a mortgage originator, with Tyndall Federal Credit Union, said that according to the lender and the program, interest rates currently sit at 6.5% on a 30-year conditional mortgage. But earlier this year, around January, Anderson said rates were in the low 4% range.
“So the feds have raised rates quite a bit this year. Most recently, three-quarters of a point, or about a 2.25% increase since the start of 2022,” Anderson said.
As interest rates rise, house prices fall, but not at pre-pandemic prices.
“Prices this year compared to the pre-pandemic period have almost doubled, they have increased by 47%. So even though they’ve come down a bit since the peak and the peak was in February/March of this year, we’re still much higher than we were before the pandemic,” West said.
So, if you’re thinking of buying a house right now, here’s a tip.
“Find a lender who is willing to sit down, whether in the office or on the phone, and discuss the process, because buying a home is usually the biggest financial decision people will make in their lifetime” , said Anderson.
Anderson also said that depending on your personal financial situation, now might still be a good time to buy. with a possibility of refinancing in the future for a lower rate and a lower payment
West said that this year so far, 30% of their trades that have been sold have been in cash. This means that there is no interest rate to pay.
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